Catenaa, Wednesday, March 05, 2025- China has set its economic growth to 5% for 2025, official documents suggested on Wednesday, while presenting more stimulus measures to bolster the economy.
In the Government Work Report released after its government annual meeting, Beijing has raised its budget deficit level to 4% of Gross Domestic Product (GDP).
This is the highest budget deficit in three decades, aligning with the “highly proactive” fiscal policy stance previously announced in January.
Officials have also lowered the country’s inflation target to 2% from 3% in 2024, the lowest in more than two decades, accepting the slow domestic demand.
The government work report has outlined plans for more stimulus measures including the issuance of $616 billion in special-purpose bonds, particularly used to finance infrastructure projects, $ 182 billion ultra-long special Treasury bonds, and $ 70 billion in special sovereign bonds to support the country’s largest commercial banks.
The report also includes policies to bolster domestic consumption, support the artificial intelligence (AI) industry, and help renewable energy projects. 4
Prime Minister Li Qiang said China needs to boost domestic demand and cross border e-commerce to push for more exports in the wake of US tariffs on China.
US President Donald Trump imposed 10% tariffs on Chinese goods last month and doubled the amount to 20% on Tuesday.
In retaliation, China announced 15% import duties on US agricultural product imports, including chicken, wheat, corn, and cotton, along with 10% levies on other food imports, such as soy, port, beef, fruits, and vegetables, which will come into effect on 10 March.
Chinese stock markets snapped a four-day losing streak, with the Hang Seng Index up by 2.84% at close on Wednesday, while all three mainland benchmarks were also higher.
